Liquidation

Can liquidators be replaced?

Yes, liquidators can be replaced.

If creditors want to replace a liquidator, they need to vote out the incumbent at an official creditors meeting.

However, they will need to have a replacement lined up; and this replacement must have provided a written guarantee that they will accept the job.

Courts can also order that a liquidator be replaced. This would happen only if a creditor or someone else with a financial interest in the liquidation had filed an application with the court.

Directors can’t order the replacement of a liquidator, even if it was them who chose the liquidator.

For more information, read our article: How do you choose the right liquidator?